To recap, SIAB has recently signed an Underwriting Agreement with M & A Securities Sdn. Bhd. and NewParadigm Securities Sdn. Bhd. This supports the acquisition of Taghill Projects Sdn. Bhd. (“Taghill”), a construction project and contract management consultancy company. Taghill boasts a robust order book valued at RM1.31 billion and has committed to a profit guarantee of at least RM24.00 million for the financial years 2024 and 2025
Siab plans a rights issue of 13 shares for every 10 held, plus 1 warrant per 2 rights shares, at 12.0 cents each(conversion price fixed at 20.0 cents). Aiming to raise RM91.98 million, funds will mainly acquire Taghill Sdn. Bhd. for RM96 million, with the remaining RM12 million funded internally. If investing for long term, subscribing is a no brainer move
Besides the rights issue and the promising technical chart, it seems that Siab is poised for a significant move soon. Additionally, at the beginning of the year, the company secured projects worth RM94.3 million, with more orders expected to come.
If you are interested to subscribe the right issue of SIAB, here's the calculation:
SIAB will issue 13 new shares for every 10 existing shares at RM0.120 per share. For every 2 shares subscribed, you will receive 1 free warrant. Let say for example, if you have 10k shares:
- Original SIAB shares: 10k - New shares you can subscribe for: 13k - Cost: RM1,560 (13k shares * RM0.120) - Total number of new SIAB shares: 23k - Free warrants: 6.5k
To convert these warrants to parent shares, the price is RM0.200. Therefore, the stock price must exceed RM0.200 for the largest warrant holder to make a profit.
Rights issue closed 2 days already.. still not yet announce the outcome of the subscription rate.. unable to tally the numbers or worried about hitting GO?? 5555
Be patient, Dkk08. The last date and time for acceptance, excess application and payment for the right issue subscription is 10 June. The company will announce the rate soon
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Lee Ying Yee
408 posts
Posted by Lee Ying Yee > 2023-12-18 20:52 | Report Abuse
more pp will kill the market ???